Arch Pharma asked to explain why it should not be treated as wilful defaulter

The public sector lender has an exposure of Rs 53 cr to Arch Pharma, which is classified as non-performing

Kolkata-based United Bank of India (UBI) has slapped a showcause notice to Arch Pharmalabs, asking the company to explain why it should not be treated as wilful defaulter.

The public sector lender has an exposure of Rs 53 crore to Arch Pharma, which is classified as non-performing.

The move comes amid the company's proposal to restructure its debt and a consortium of banks has referred the account to the corporate debt restructuring cell. Banks have around Rs 1,800 crore exposure to Arch Pharma.

It is not immediately known whether some of the other consortium members have also classified the account as an NPA.